How to Work with Resources in SAP Business One · PDF fileHow-To Guide SAP Business One 9.1...

How-To Guide

SAP Business One 9.1 PL04 and higher, and SAP Business

One 9.1, version for SAP HANA PL04 and higher Document Version: 3.0 – 2015-04-13

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How to Work with Resources in SAP Business One Country: All

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© 2015 SAP SE. All rights reserved.

How to Work with Resources in SAP Business One

Typographic Conventions

Typographic Conventions

Type Style Description

Example Words or characters quoted from the screen. These include field names, screen titles,

pushbuttons labels, menu names, menu paths, and menu options.

Textual cross-references to other documents.

Example Emphasized words or expressions.

EXAMPLE Technical names of system objects. These include report names, program names,

transaction codes, table names, and key concepts of a programming language when they

are surrounded by body text, for example, SELECT and INCLUDE.

Example Output on the screen. This includes file and directory names and their paths, messages,

names of variables and parameters, source text, and names of installation, upgrade and

database tools.

Example Exact user entry. These are words or characters that you enter in the system exactly as

they appear in the documentation.

<Example> Variable user entry. Angle brackets indicate that you replace these words and characters

with appropriate entries to make entries in the system.

EXAMPLE Keys on the keyboard, for example, F2 or ENTER .


Table of Contents

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© 2015 SAP SE. All rights reserved. 3

Table of Contents

1 Introduction ................................................................................................................................... 5

2 Initial Settings ............................................................................................................................... 6 2.1 Defining Primary G/L Accounts ........................................................................................................... 6 2.2 Advanced G/L Account Determination ............................................................................................... 8 2.3 Enabling Fixed Assets Functionality ..................................................................................................... 8 2.4 Defining Resource Defaults .................................................................................................................. 9 2.5 Defining a Default Warehouse ............................................................................................................ 12 2.6 Defining Resource Properties ............................................................................................................. 12 2.7 Defining Resource Groups .................................................................................................................. 13

3 Working with Resource Master Data ........................................................................................ 15 3.1 Creating Master Data Records ........................................................................................................... 15 3.2 Updating Master Data Records .......................................................................................................... 22 3.3 Deleting Master Data Records ............................................................................................................ 22

4 Working with Resource Capacity .............................................................................................. 23 4.1 Setting Internal Resource Capacity ................................................................................................... 23

4.1.1 Setting Internal Resource Capacities in a Batch (Set Daily Internal Capacities

Window) ............................................................................................................................... 23 4.1.2 Setting Daily Internal Resource Capacity for Specific Days Manually (Resource

Capacity Window) ............................................................................................................... 25 4.2 Viewing Resource Capacity ................................................................................................................ 28

4.2.1 Viewing Resource Capacity from Resource Capacity Window ....................................... 28

5 Enhancements to Item Master Data ......................................................................................... 32

6 Enhancements to Bill of Materials Handling .......................................................................... 34 6.1 Bill of Materials Window ...................................................................................................................... 34 6.2 Managing Bill of Material Components .............................................................................................. 36

6.2.1 Changing BOM Components .............................................................................................. 36 6.2.2 Adding BOM Components .................................................................................................. 38 6.2.3 Deleting BOM Components ................................................................................................ 41

7 Enhancements to Production Orders ...................................................................................... 43 7.1 Production Order Window ................................................................................................................... 43 7.2 By-Product Handling in Production Orders and Production Processes ......................................... 47 7.3 Change of Valuation Method of Item Included in Open Production Order ..................................... 48 7.4 Disassembly Production Order .......................................................................................................... 48 7.5 User-Defined Fields (UDF) Handling .................................................................................................. 48 7.6 Document Settings and WIP Account ................................................................................................ 48 7.7 Closing Production Order and Handling Components Cost ........................................................... 50

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Table of Contents

8 Enhancements to Issue for Production .................................................................................... 52 8.1 Issue for Production Window ............................................................................................................. 52 8.2 Posting Behind Issue for Production ................................................................................................. 53

9 Enhancements to Receipt from Production ............................................................................ 55 9.1 Backflush Components Handling and Impact of Additional Quantity ............................................ 56

10 Interim WIP Consolidation Account Mapping ......................................................................... 57


Introduction

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1 Introduction

The Resources module together with the existing production functionality provides a base platform for managing

light manufacturing processes in SAP Business One.

A resource is defined as a commodity, machine, labor, or other asset used to produce goods and services. As

opposed to items, resources have capacity available throughout a period of time which can be consumed in a

production process. Resources (resource capacity) can therefore be assigned to production orders. Resource

capacity is always viewed within a period of time called "capacity period".

Consumption of resources in a production process contributes to the overall production costs and can be split

into underlying cost elements for further accounting purposes.

Using the resources functionality you can perform the following key business functions:

Manage basic production capacity

Analyze real production variances

Simplify BOM management

Use production order more flexibly

Monitor complete standard production costing

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Initial Settings

2 Initial Settings

2.1 Defining Primary G/L Accounts

Define G/L accounts to be used for resources. Postings behind transactions are made to these accounts directly

unless you create advanced G/L account determination rules for resources and specify other accounts for certain

transactions.

Example

You may have different resource groups which should use different standard cost expense accounts. If

you name Standard Cost Expense 1 differently for two different groups, the system posts costs for both

resource groups to the account defined for the Standard Cost Expense 1 in the G/L Account

Determination window. To enable posting values for Standard Cost Expense 1 to different accounts

depending on the resource group, you can define advanced G/L account determination rules according to

which the system will post cost expenses to the accounts determined by each resource group separately.

For more information, see 2.2 Advanced G/L Account Determination.

Procedure

1. From the SAP Business One Main Menu, choose Administration → Setup → Financials → G/L Account

Determination → G/L Account Determination → Resources tab.

Account Description

Std. Cost Expense

1 … 10 Note

These fields are available only if you are using a perpetual inventory system.

Define accounts for up to ten standard cost expense components. Each of the standard

cost components is posted when the resource is consumed through the production

order, that is, when a user creates the issue for production document with resource

lines. When issuing to production, each separate standard cost component numbered

from 1 to 10 is credited according to the quantity consumed to the corresponding

standard cost expense account and debited to the related WIP account.

If you return a resource through the return components functionality in the receipt from

production, the system posts a reverse transaction.

Resource WIP

Account Note

This field is available only if you are using a perpetual inventory system.

This account maintains the value of resources that are included in the work process,

that is, the period between the start of production and the completion of the final

product. The value from this field is copied to the Account Code field for resource lines

in the issue for production document if the following applies:

The Component WIP Account radio button is selected for the production order

document in the Document Settings window. For more information, see 7.6

Document Settings and WIP Account.


Initial Settings

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Account Description

You have not defined the Account Code field for a resource line in the Production

Order window.

If you defined the Account Code field for a resource line in the production order

manually, or if the value has been copied from the Bill of Materials window, then

that code is used as the Resource WIP account in the issue for production for the

resource in question.

Offset accounts Note

The offset accounts are available only if you are managing accounting with

Balance Sheet accounts and Profit and Loss accounts. To manage accounting

with these accounts, from the SAP Business One Main Menu, choose

Administration → System Initialization → Document Settings → Per Document

tab, in the Document field, select Production Order. In the Posting Schemas for

Manufacturing area, select the Accounting with Balance Sheet Accounts and

Profit & Loss Accounts radio button.

Note

This feature is available in the following localizations only:

o Czech Republic

o Slovakia

o Hungary

o Germany

o Portugal

o Turkey

o Spain

o Korea

o France

o Korea

o France

o Russia

o USA

o Canada

o Switzerland

o Austria

o Netherlands

Postings for resources related to issues for production, receipts from production and

production order closure impact these accounts. That is, the offset accounts appear in

any posting in which the WIP account and the Std Cost Expense accounts are used.

The offset postings are dependent on the definition in the Document Settings window

for the production order of whether to use component or parent item WIP accounts for

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Initial Settings

Account Description

component transactions. For more information, see 7.6 Document Settings and WIP

Account.

WIP Offset P&L

Account

This account is used to offset the WIP resource account posting.

Resource Offset

P&L Account

This account is used to offset all of the Std Cost Expense accounts that are in use. This

offset account selects component related account irrespective of the document

settings option for parent or component WIP accounts.

2.2 Advanced G/L Account Determination

You can manage resource G/L account determination according to a flexible and centralized method. By setting a

hierarchy of rules, you can assign resource G/L accounts by the following determination criteria:

Resource groups

Resources

Warehouses

Various combinations of all the above criteria

If defined, the advanced G/L account determination rules have priority over the settings in the G/L Account

Determination window. However, there are exceptions, for example, if you define the WIP Account field in the Bill

of Materials or the Production Order window manually, that account will be used as the WIP account regardless of

the criteria you defined in the Advanced G/L Account Determination window. For more information on this

functionality, see the How To Set Up and Work with Advanced G/L Account Determination guide in the

documentation resource center.

2.3 Enabling Fixed Assets Functionality

If you want to associate some resources with fixed assets, you need to enable the fixed assets functionality.

Procedure

1. From the SAP Business One Main Menu, choose Administration → System Initialization → Company Details →

Basic Initialization tab.

2. Select the Enable Fixed Assets checkbox.


Initial Settings

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A system message appears informing you that enabling this functionality is an irreversible process. Choose

Yes.

3. On the Basic Initialization tab, in the Calculate Depreciation By field, select one of the following options:

Month

Day

4. Choose Update.

For more information on how to use the fixed assets functionality, see the online help for SAP Business One.

2.4 Defining Resource Defaults

To define default settings for resources at the company level, proceed as follows:

1. From the SAP Business One Main Menu, choose Administration → System Initialization → General Settings →

Resources tab.

Define the following fields:

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Initial Settings

Field/Checkbox Activity/Description

Default

Warehouse

Select a default warehouse. This warehouse will be used for resources in production

orders.

Note

You can also set a default warehouse at the resource level and at the user

level. For more information, see Defining a Default Warehouse.

Auto Add All

Warehouses to

New Resources

If you select this checkbox, when adding a new resource master data record, all

warehouses appear in the Warehouse table on the Capacity Data tab.

If you deselect this checkbox, when adding a new resource master data record, only

the default warehouse appears in the Warehouse table on the Capacity Data tab.

Default Capacity

Period

Determines the default capacity period displayed upon opening any of the windows

that contain the Capacity Period From…To fields.

Note

Upon opening windows and tabs which contain the Capacity Period field, the

From date is always the current system date. The To date is calculated by the

settings for resources in the General Settings window. You can shift between

periods using the arrow buttons; the buttons move the capacity period

backwards and forwards by the same number of days as displayed upon

opening the window.

1. In the Start From Today Until field, specify the default end date for capacity period

calculation:

Today - The current system date is taken as a start date for calculation.

Month Start - The first day of the month of the current system date is taken as a

start date for calculation.

Month End - The last day of the month of the current system date is taken as a

start date for calculation.

2. In the Months and Days fields, specify the number of months and days from the

start date. Both positive and negative numbers are allowed.

Example 1

You have defined the default capacity period as displayed below.


Initial Settings

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Upon opening the Capacity Data tab of the Resource Master Data window, the

Capacity Period From field is always the current date, for example, September

23, 2013. Since the end date of the capacity period is Today, the To field is

September 23, 2013. The forward and backward arrows move the capacity

period by one day.

Example 2



Capacity Period From field is the current system date, for example,

September 23, 2013. The To field is October 1st, 2013. The forward arrow

moves the capacity period by the same number of days, hence the From date

is October 2 and the To date is October 10.

Example 3



Capacity Period From field is the current date, for example, September 23,

2013. The To field is September 30, 2013 (calculated from September 1, the

month start). The forward arrow moves the capacity period by the same

number of days, hence the From date is October 1 and the To date is October

8.

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Initial Settings


Example 4



Capacity Period From field is the current date, for example, September 23,

2013. The To field is October 10, 2013 (calculated from September 30, the

month end). The forward arrow moves the capacity period by the same

number of days, hence the From date is October 11 and the To date is October

28.

Note

If upon opening the Capacity Data tab (or any other window containing the

Capacity Period From… To fields) the current date is later than the To date by

the set calculation, the capacity period displays results for the current date

only.

3. To save the changes, choose OK.

2.5 Defining a Default Warehouse

You can set a default warehouse for a resource at three levels:

1. Resource level - in the Resource Master Data window

2. User level - in the User Defaults window

3. Company level - in the General Settings window (Administration → System Initialization → General Settings →

Resources tab)

The system takes the default warehouse according to the order above; for a new transaction, the system takes

the default warehouse from the resource level. If a resource does not have a defined default warehouse at the

resource level, it takes the default warehouse from the user level. If there is no default warehouse defined at the

user level, it takes the default warehouse defined in the general settings.

2.6 Defining Resource Properties

You can define resource properties and use them for filtering purposes, for example, in reports.


Initial Settings

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Procedure

To define resource properties, proceed as follows:

1. From the SAP Business One Main Menu, choose Administration → Setup → Resources → Resource

Properties. The Resource Properties - Setup window appears.

By default, the fields are named Resource Master Data Property 1… 64.

2. To change the name field, click the line and enter a desired property name.

3. Choose Update.

2.7 Defining Resource Groups

Whenever you create a resource, it belongs to a group. The default resource group is Resources. You can create

more groups to classify your resources. Upon creation, a resource obtains setting defaults from its group. You can

change these settings at the resource level in the Resource Master Data window.

Use the groups for analysis purposes, reports, evaluations, and to process resources together as a group.

Procedure

To create a resource group, proceed as follows:

1. From the SAP Business One Main Menu, choose Administration → Setup → Resources → Resource Groups.

The Resource Groups - Setup window appears.

2. In the Resource Group Name field, enter the name of the group you want to create.

3. In the Resource Type field, select one of the following options:

Machine - This type of resource can be linked to fixed assets.

Labor - This type of resource can be linked to employees.

Other - This type of resource cannot be linked to fixed assets or employees.

The default option is Machine.

4. In the field Unit of Measure Text, enter the unit of measure used for this resource group.

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Initial Settings

5. In the Resource Std Cost table, you can define up to ten components of the resource standard cost per the

defined unit of measure.

In the column, User-Definable Name, enter the desired name of the cost component, for example,

"Electricity".

In the column Default Std Cost, enter costs charged for one defined unit of measure.

The names and default standard cost values will be copied into the resource master data if the resource

belongs to this group.

6. Choose Update.


Working with Resource Master Data

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3 Working with Resource Master Data

Use the resource master data to add, update, search and maintain resource data.

3.1 Creating Master Data Records

Procedure

From the SAP Business One Main Menu, choose Resources → Resource Master Data.

1. The window appears in Find mode. Switch to Add mode.

2. Define the fields in the header area and on the tabs as described below and choose Add.

General Area (Header)

In the general area, define the following fields:

Note

Fields that are self-explanatory are not described in the table below.

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Field/Checkbox Activity/Description Comments

Resource No. Define a number (code) for the resource. The

value of this field must be unique; other

resources or items cannot have the same code.

Bar Code Enter a bar code for the resource. You can only

enter one bar code per resource.

Resource Type From the dropdown list, select one of the

following resource types:

Machine

Labor

Other

The default value is defined by the selected

resource group.

Resource Group Select the group to which you want to assign

the resource.

Note

The resource draws default values

from the resource group as described

in Defining Resource Groups. You can

update them at the resource level in

this window.

Unit of Measure

Text

Enter a unit of measure for expressing

resource capacity. For example, machine cycle,

hour, or minute.

Time per Resource

Units

Enter the time per resource units in the

<hours:minutes:seconds> format. This

field is related to the Res. Units per Time Period

field.

Note

Resource capacity is always expressed

in quantity of units of measure;

capacity time in this field is used to

translate the capacity quantity into

capacity time for reporting purposes

only.

Example

You have a machine that

works in cycles. Each

cycle takes 15.

In Time per Resource

Units enter 00:15:00, and

in Res. Units per Time

Period enter 1 (1 cycle in

15 minutes).

Alternatively, you can

define Time per Resource

Unit as 01:00:00, and

Res. Units per Time

Period as 4.

Res. Units per Time

Period

Enter the number of resource units to which

the Time per Resource Units field relates. The

default value is 1.



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Field/Checkbox Activity/Description Comments

Note

These definitions are used to

calculate the Run Time value for

resources included in a

production order. You can leave

these fields blank.

General Tab

On the General tab, view or define the following fields:

Note

Fields that are self-explanatory are not described in the table below.


Issue Method Select one of the following issue methods:

Backflush - Upon receiving finished items on a production order, the

resource capacity is automatically consumed, that is, the issue to

production is then automatically issued.

Manual - Receipt of finished items on a production order does not impact

the capacity of the resource. Resource consumption (issue to production)

must be issued manually.

The default option is Backflush.

Resource Allocation From the dropdown list, choose one of the following options:

On Due Date - All the capacity of the resource is allocated to the due date

of the production order regardless of the quantity of the Internal and

Available capacities on that day.

Automatic - The capacity of the resource is allocated automatically

regarding the Internal, but regardless of the Available capacities on that

day. For more details on automatic resource allocation, see Production

Order Window.

The default value is On Due Date. This field is later copied to the production

order.

Resource Std. Cost The field names and default values of each cost component are defined by the

selected resource group. To change the values for this resource, enter them in

the Default Std. Cost column.

Consumption of resources on a production order automatically adds these

separate resource costs to separate WIP and expense accrual accounts.

Active Enter the range of dates to determine a validity period for the resource.

Inactive Enter the range of dates to indicate the period for which you freeze the

resource.

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Advanced Enter the range of dates to determine the following:

Active Range - a validity period for the resource

Inactive Range - the period for which you freeze the resource

Capacity Data Tab

On the Capacity Data tab, you can view resource capacity for a desired period per warehouse.

1. Upon opening the window, the From date is always the current system date and the To date is defined by the

default capacity period defined in the Resources tab of the General Settings window. Use the arrow buttons to

shift between capacity periods.

To view the capacity data for a different date range, enter the desired date range in the Capacity Period field

and click anywhere in the table.

Note

The capacity period is restricted to a maximum of one year.

2. View or define the following fields in the warehouse table:

Field/Checkbox Description/Activity

Whse Code To define an additional warehouse for the resource, select one from the choose

from list in this field.

Locked Selecting this checkbox locks the warehouse for the resource and prevents you

from adding the resource from this warehouse to production orders.



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Note

The setting of this field has no impact on the ability to enter or update

capacity data.

Internal The capacity that you set for a resource available in your warehouses or production

areas. The capacity applies to the period specified on this tab. For more

information, see 4.1 Setting Internal Resource Capacity.

Committed The capacity that has not yet been issued and that is assigned to production orders

of either Planned or Released status, and which has been allocated within the

capacity period defined on this tab.

Consumed The sum of the issued resource capacity on production orders and which is

allocated within the capacity period specified on this tab.

Available This capacity is defined per warehouse within the specified capacity period as

follows:

Internal Capacity - Committed Capacity - Consumed Capacity

Set Default Whse To set a default warehouse at the resource level, select the desired row and choose

this button.

Note

Capacity data in the warehouse table are rounded according to the settings in SAP Business One Main

Menu → Administration → System Initialization → General Settings → Display tab → Quantities field.

Note

To delete a row, right-click in the row and choose Delete Row. You can only delete a row which has zero

capacity set from today into the future.

Planning Data Tab

On the Planning Data tab, you can plan daily internal capacity which you can later set as default values in the

Resources - Set Daily Internal Capacity window.

1. For every day in the table, enter up to four daily capacity factors in numbers that determine the overall daily

capacity of the resource. The total daily standard capacity is automatically calculated in the Daily Capacity

field by multiplying the factors. Instead of entering daily factors, you can enter the daily capacity directly in

the Daily Capacity field.

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Example

The resource is a wood cutting machine and the unit of measure is machine hour. You have three wood

cutting machines which can be operated eight hours a day. In the Daily Capacity Factors fields, enter

numbers 3 and 8. In the Daily Capacity field, the total daily capacity of 24 hours is displayed.

2. You can enter comments and remarks in the Remarks field.

Fixed Assets

Depending on the resource type you have defined, you can associate it with fixed assets or employees.

If the resource type is Machine, on the Fixed Assets tab, you can associate fixed assets with the resource.

To do so, in the Fixed Asset Item No field, select a fixed asset from the choose from list. The remaining fields are

then filled with the values from the relevant fields in the Asset Master Data window.



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Note

o This tab is available only if the Enable Fixed Assets checkbox is selected, as described in Enabling

Fixed Assets Functionality.

o One resource can be associated with multiple fixed assets, but one fixed asset can be associated with

one resource only.

To delete a row, proceed as follows:

1. Select the desired row.

2. In the menu bar, choose Data → Remove.

3. A message appears informing you about the removal process. Choose Yes.

Employees Tab

To associate the resource to an employee, in the Employee No. field, from the choose from list, select an

employee. The remaining fields are then filled with the values from the relevant fields in the employee master data

record.

Note

o This tab is visible only if the resource type is Employee.

o One employee can be associated with multiple resources.

To delete a row, proceed as follows:

1. Select the desired row.

2. In the menu bar, choose Data → Remove.

3. A message appears informing you about the removal process. Choose Yes.

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Properties Tab

On the Properties tab, you can assign properties to the resource.

Remarks Tab

On the Remarks tab, you can add text or an image to further describe the resource.

Attachments Tab

On the Attachments tab, you can add files related to the resource. Document formats include Word, Excel, .bmp

files and other file extensions.

3.2 Updating Master Data Records

Procedure

1. From the SAP Business One Main Menu, choose Resources → Resource Master Data.

2. In the Resource No. field, enter the complete or partial resource number and choose Find.

3. Modify the necessary fields and choose Update.

4. Choose Update to save the changes.

3.3 Deleting Master Data Records

Caution

You can remove a resource only if all of the following apply:

o It is not assigned to a document or a draft document.

o It is not assigned to any open sales, purchasing or production documents.

o The internal capacity of the resource for the current system date and later is zero.

Procedure

1. From the SAP Business One Main Menu, choose Resources → Resource Master Data.

2. In the Resource No. field, enter the complete or partial resource number and choose Find.

3. In the SAP Business One menu bar, choose Data → Remove.

A system message appears informing you that this process is irreversible.

4. Choose Yes.


Working with Resource Capacity

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4 Working with Resource Capacity

4.1 Setting Internal Resource Capacity

You need to set the internal resource capacity for resources, so that the exact available capacity can be used as a

measure against resource requirements in open production orders. Use the following options:

To set or update daily internal capacity in a batch for a selected range of resources within a period of time, use

the Resources - Set Daily Internal Capacities window, as described in section 4.1.1 Setting Internal Resource

Capacities in a Batch (Set Daily Internal Capacities Window).

To set or update internal capacity manually for one or more resources for specific days, use the Resource

Capacity window, as described in section 4.1.2 Setting Daily Internal Resource Capacity for Specific Days

Manually (Resource Capacity Window).

You can also use this window to view all types of capacities per a period of time (Internal, Committed,

Consumed, or Available).

4.1.1 Setting Internal Resource Capacities in a Batch (Set Daily Internal Capacities Window)

Procedure

1. From the SAP Business One Main Menu, choose Resources → Set Daily Internal Capacities.

Note

You can access this window from the Resource Capacity window by choosing the Set Daily Internal

Capacities button. In this case, all the selection criteria fields inherit the values from the Resource

Capacity window.

2. The Capacity Period fields are defined by the initial settings for the default capacity period.

Upon opening the window, the From date is always the current system date. The To date is defined by the

default capacity period. Use the arrow buttons to shift between capacity periods. To define a different

capacity period, enter the desired date range in the Capacity Period field and click outside the fields.

3. Define the range of the remaining selection criteria in the header area:

Warehouse Code

Resource No.

Resource Group

Resource Type

Resource Properties

Note

If you leave any of the fields above blank, the system selects all data from the category.

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4. In the Set Daily Capacity Basis Using field, select one of the following options:

Note

Depending on this selection, different fields in the window are enabled.

Data from Planning Data Tab of Resource Master Data - Sets the internal capacity for the selected range of

resources using the values specified on the Planning Data tab of the relevant resource master data record.

1. In the table area, in the Update Data For column, select the checkboxes for the days for which you want to

update the internal capacity.

2. To modify the data from the Planning Data tab, in the Increase/Decrease Data from Planning Data Tab By

field, select one of the following:

o Fixed Capacity - Enter the amount of resource units, positive or negative, by which you want to

increase or decrease the data.

o Percentage - Enter the percentage, positive or negative, by which you want to increase or decrease

the data.

Manual Data as Entered Below for Each Weekday - Sets the internal capacity for the selection of resources

according to the data entered manually in this window.

1. In the table area, in the Update Data For column, select the checkboxes for the days for which you want to

update internal capacity.

2. In the Daily Capacity Factors fields, enter up to four daily capacity factors in numbers that determine the

overall daily capacity of the resource. The total daily standard capacity is automatically calculated in the

Daily Capacity field by multiplying the factors. Instead of entering daily factors, you can enter the daily

capacity directly in the Daily Capacity field.

5. In the Additional Comment field, you can enter text which will be accessible from the Resource Capacity

window. In the mentioned window, the data associated with this comment are displayed in blue.

6. If you do not want the capacity data to be applied to holiday days, select the Do Not Update Holiday Days

checkbox.



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7. Choose Update.

Note

o To view capacity for a resource that you have defined here, use the Resource Capacity window. There

you can update resource capacity for specific days manually.

o When you access this window from the Main Menu, the Capacity Period From…To values appear

according to the rules defined in the General Settings window, and the remaining criteria are inherited

from the last execution view.

4.1.2 Setting Daily Internal Resource Capacity for Specific Days Manually (Resource Capacity Window)

Procedure

1. From the SAP Business One Main Menu, choose Resources → Resource Capacity.

The Resource Capacity window appears.

Note

If you access this window from the Resource Master Data window, the selection criteria from the Resource

Capacity window are copied to the Resource Capacity window and internal resource capacity data for All

Warehouses is displayed.

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2. In the Capacity Type field, select Internal.

3. The Period Capacity From and To fields are determined by the defined default capacity period. To shift

between capacity periods, use the arrow buttons. To change the capacity period, enter the desired date range

and choose Refresh.

Note

The defined capacity period cannot be longer than one year.

4. Define the range of the remaining selection criteria in the general area, then choose Refresh:

Warehouse Code

Resource No.

Resource Group

Resource Type

Resource Properties

Resource Properties Status

Note

o If you leave any of the fields above blank, the system selects all data from the category.

o If there is already any internal capacity defined for this period, it is displayed in the table area.



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To view data for each day in the table, scroll over the date fields, as displayed below:

5. In the desired date field, enter capacity for a resource. You can enter decimal values, too.

You can repeat this for as many dates and resources as you need.

Note

Dates related to holiday days are displayed in red.

To decrease or increase values by 5%, press CTRL and select the desired rows in the table, then choose the

Decrease/Increase Percentage buttons or enter a desired percentage value in the field (positive or negative).

6. To enter a comment, double-click a desired cell in the table and choose Edit Comment. Enter the comment

and choose OK.

Fields with comments added from the Resource Capacity window are displayed in red.

Fields with comments added from the Resources - Set Daily Internal Capacity window are displayed in blue.

You can edit those comments in this window, as well. In that case, the fields are no longer displayed in blue,

but in red.

7. The following internal capacity totals related to the selection criteria are displayed in the table:

At the bottom of each column - displays the total internal capacity of the displayed items per date.

In the Total column - for each item, displays the total internal capacity for the defined capacity period.

At the bottom of the Total column, the value of the summed totals is displayed.

8. To save the data, choose Update.

Note

If you access this window from the Main Menu, all selection criteria are inherited from the last execution

view except the Capacity Period From… To field, which appears according to the definitions in the General

Settings window. Choose Refresh to display the capacity data in the table.

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4.1.2.1 Accessing Resource Capacity Window from Resource Master Data

If you access the Resource Capacity window from the Capacity Data tab of the Resource Master Data window, the

selection criteria from the Capacity Data tab are copied to the Resource Capacity window. To access the Resource

Capacity window from Resource Master Data, proceed as follows:

On the Capacity Data tab, right-click anywhere in the window and choose Internal Resource Capacity.

The Resource Capacity window opens with the following selection criteria copied from the Capacity Data tab:

All Warehouses, Capacity Period, and Resource No.

4.1.2.2 Accessing Resource Capacity Window from Production Order Window

You can access the Resource Capacity window from the Production Order window. To do so, in the resource line,

click (Link Arrow) in the Available column. The Resource Capacity window opens with the following criteria:

Capacity Type: All

Capacity Period: Not defined

Warehouse Code: Copied from the resource line of the production order

4.2 Viewing Resource Capacity

To view data for all capacity types for a resource within a desired capacity period, use the Capacity Data tab in

the Resource Master Data window.

To view daily data for all capacity types for a selected range of resources within a desired capacity period, use

the Resource Capacity window as described below.

4.2.1 Viewing Resource Capacity from Resource Capacity Window

Note

If you access this window from the Main Menu, all selection criteria are inherited from the last execution

view except the Capacity Period From… To field, which appears according to the definitions in the General

Settings window. Choose Refresh to display the capacity data in the table.

Procedure

1. From the SAP Business One Main Menu, choose Resources → Resource Capacity.



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2. From the dropdown list in the Capacity Type field, select the desired option:

Internal - If you select this, you can also update the capacity data as described in Setting Daily Internal

Resource Capacity for Specific Days Manually (Resource Capacity Window).

Committed

Consumed

Available

All - If you select this, all four capacity types are displayed simultaneously. In the collapsed view, only the

Available capacity is visible. In the expanded view all four capacity types are visible.

3. The Period Capacity From and To fields are determined by the defined default capacity period. Upon opening

the window, the From date is the current system date. To shift between capacity periods, use the arrow

buttons. To change the capacity period, enter the desired date range and choose Refresh.

4. Define the range of the remaining selection criteria in the header area:

Warehouse Code

Resource No.

Resource Group

Resource Type

Resource Properties

Note

If you leave any of the fields above blank, the system selects all data from the category.

Choose Refresh.

The capacity data for the defined selection criteria are displayed in the table area.

5. To view data for each day in the table, scroll to the right over the date columns.

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Note

For Internal resource capacity type, the following applies:

o Capacity data with comments added from the Resource Capacity window are displayed in blue.

o Capacity data with comments added from the Resources - Set Daily Internal Resource Capacity

window are displayed in red.

To view the comments, hover over the field.

6. To view cumulative quantities of the selected capacity type, select the Show Cumulative Capacity from Today

checkbox. The capacity quantities accumulate with each day starting from the current system date,

regardless of the Capacity Period you are viewing. Data for days prior to the current system date are in this

case blank.

Note

If you are viewing the Internal capacity type, the fields in the table are read-only; you cannot update the

internal capacity if the Show Cumulative Capacity from Today checkbox is selected.

Example 1 - Show Cumulative Capacity from Today

o You are viewing Available capacity for a resource for a period of 5 days. The From date is the current

system date, July 12. The following information is displayed in the table when the Show Cumulative

Capacity from Today checkbox is deselected.

Capacity Type July 12 July 13 July 14 July 15 July 16

Available 5 5 7 5 6

o You are viewing Available capacity for the same resource, for the same period. However, now the

Show Cumulative Capacity from Today checkbox is selected.

Capacity Type July 12 July 13 July 14 July 15 July 16

Available 5 10 (5+5) 17 (5 + 5 + 7) 22 (5 + 5 + 7 +

5)

28 (5 + 5 + 7 +

5 + 6)


You are viewing Available capacity for a resource for a period of 7 days. The From date is July 10, the

current date is the current system date, July 12. The following information is displayed in the table when

the Show Cumulative Capacity from Today checkbox is selected.

Capacity

Type

July 10 July 11 July 12 July 13 July 14 July 15 July 16

Available 5 10 (5+5) 17 (5 + 5 +

7)

22 (5 + 5

+ 7 + 5)

28 (5 + 5

+ 7 + 5 +

6)



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You are viewing Available capacity for a resource for a period of 3 days. The From date is July 14, the

current date is the current system date, July 12. The following information is displayed in the table when

the Show Cumulative Capacity from Today checkbox is selected.

Capacity Type July 14 July 15 July 16

Available 17 (5 + 5 + 7) 22 (5 + 5 + 7 +

5)

28 (5 + 5 + 7 +

5 + 6)

7. If you are viewing All capacity types in collapsed view, the quantities in resource rows display the Available

capacity type. Choose the Expand All button, to switch to the expanded view and display all capacity type

rows.

In the Internal capacity type row, if you have defined internal capacities for the defined period, the

relevant quantities are displayed. You can update the internal capacity for any of the dates displayed, and

view or add comments.

In the Committed and Consumed capacity type rows, the cells which contain values appear as push

buttons. Click them to see the relevant source documents related to the committed or the consumed

quantity of the resource.

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Enhancements to Item Master Data

5 Enhancements to Item Master Data

A new Production Data tab with a number of fields has been added to the Item Master Data window to help

streamline BOM and resource management.

To use the enhancements, from the SAP Business One Main Menu, choose Inventory → Item Master Data →

Production tab.

View or define the following:


Phantom Item Note

This checkbox has been moved from the General tab to the Production Data

tab.

Defines the item as a phantom; a phantom item is an item type in BOM that has an

engineering or structure function only. Phantom items do not represent a physical

component or a subassembly, thus they are defined as non-inventory items.

Issue Method Note

This checkbox has been moved from the General tab to the Production Data

tab.

Select one of the following issue methods:


Enhancements to Item Master Data

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Backflush - after you report the completion of the parent item, the components

are automatically issued to the production order.

Manual - the components are manually issued to the production order,

regardless of the issue of the product.

Note

You cannot use the Backflush method for items managed by serials or

batches.

BOM Type This field indicates if the item is associated with a BOM as a parent item. The field is

blank if the item is not associated with any BOM. Otherwise, the following values are

possible:

Assembly - The item is associated with an assembly BOM.

Sales - The item is associated with a sales BOM.

Production - The item is associated with a production order.

To open the related BOM, click (Link Arrow).

No. of Item

Components

Displays the number of item components that are currently included in this item's

BOM.

No. of Resource

Components

Shows the number of resource components that are currently included in this item's

BOM.

Production Std Cost Enter the estimated standard cost for this item. You can update this field

irrespective of whether it is a parent or child item and irrespective of whether the

item exists on any BOM or not.

Include in Production

Std Cost Roll Up

Select this checkbox to include the item in the std cost roll up routine. Through this

routine, the Production Std Cost field is updated with the total of the production

standard cost and resource standard cost values from all of its item and resource

components.

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Enhancements to Bill of Materials Handling

6 Enhancements to Bill of Materials Handling

The following major changes have been introduced to BOM handling:

In the Bill of Materials window, apart from child components, you can now add resource components and

textual information, as well.

You can update, replace, or delete all three types of components in BOMs in a batch.

6.1 Bill of Materials Window

1. From the SAP Business One Main Menu, choose Production → Bill of Materials.

2. View or define the fields in the Bill of Materials window that have been updated or added :

Field Description/Activity

Production Std

Cost (header)

Displays the production standard cost of the parent item as defined on the Production

Data tab of its item master data record.

Planned Average

Production Size

Specify the number of the parent items that you process in one run. The field is related to

the Additional Quantity field. Additional quantity affects the total production standard

cost based on the planned average production size.

This field is not mandatory.

Type From the dropdown menu, select one of the following options:

Item - Select this to define an item component.

Resource - Select this to define a resource component.

Text - Select this to enter text. With this option, all the remaining fields in the line are

disabled.



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No. From the choose from list, select an item for the Item type line, or a resource for the

Resource type line. Values from relevant fields in the item master data or resource

master data records are copied into the remaining fields in the line.

Quantity Enter the quantity of the item or resource component.

Note

For resource components, the value cannot be negative.

Additional

Quantity

Enter additional quantity for an item or a resource component. The value from this field is

then copied into the Additional Quantity field in the production order document. The

quantity is added to the total planned quantity of items and resources and the total

planned time in the production order, regardless of the quantity of the parent item

produced.

Example

Planned Qty of the parent (in the production order header) = 2

Base Qty of the resource = 4

Additional Qty of the resource = 1

Planned Qty of the resource = 2*4+1

Note

o The system allows items or resources with a Manual issue method to have

the Base Qty of zero and the Additional Quantity of a number greater than

zero.

o With resources and items with a Backflush issue method, the entire

additional quantity is consumed upon the completion of the first parent item.

For example, if in one production order you plan to produce 10 parent items,

the additional quantity is consumed upon the completion of the first parent

item.

o The Additional Quantity for by-product lines is always zero.

Production Std

Cost (row)

For items, this field displays the production standard cost as defined on the Production

Data tab of its item master data record.

For resources, the field displays the total of all underlying resource standard costs as

defined on the General tab of the relevant resource master data record.

Total Production

Std Cost

Displays the total production cost for each item and resource component. At the bottom

of the column, the total production standard cost for the parent item is displayed.

WIP Account This account is used to post the value of resource and item components that are in the

process of production.

In the choose from list, select an account from the list of accounts. When the BOM is

used in a production order, the value from this field is copied into the WIP Account field of

the production order and is later used in the Account Code field in the issue from

production document.

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However, if this field is left blank for item or resource component lines, the Account Code

field in the issue for production document defaults to the WIP Account associated

through the document settings options. For more information, see section 7.6 Document

Settings and WIP Account.

Up/Down Arrows You can change the presentation sequence of the component lines. To do so, select the

desired component line and click or to move it up or down.

Note

Some fields are not displayed by default. To define which fields should be displayed, click (Form

Settings) in the toolbar.

Note

A resource can be a component of a phantom item.

6.2 Managing Bill of Material Components

Using the component management functionality, you can replace, add or delete components of all types from

BOMs in a batch.

Note

If an error occurs during the execution of replacing, adding, or deleting components, none of the selected

BOMs are updated.

6.2.1 Changing BOM Components

You can replace component lines of a BOM with different components or update the existing ones, for example,

the quantity, issue method, and so on.



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Procedure

1. From the SAP Business One Main Menu, choose Production → Bill of Materials - Component Management.

The Bill of Materials - Component Management window appears.

2. From the Management Task dropdown list, select Change BOM Lines.

3. In the Select BOMs section, define the range of selection criteria for BOMs in which you want to replace or

change components.

4. In the Select BOM Lines section, select one of the following:

Item - In the From and To fields, define the range of the item components in the selected BOMs you want

to change or replace.

Resource - In the From and To fields, define the range of the resource components in the selected BOMs

you want to change or replace.

Text - Enter at least part of the text which you want to replace. In the Replacement Text field enter the new

text and move to Step 6, as the fields relevant to items and resources in the BOMs are not available in the

window.

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5. In the Specify Properties for BOM Lines to Be Changed section, proceed as follows:

If you want to replace the selected components with a different one, select the Replacement BOM

Component checkbox. In the choose from list, define the replacement component and define the number

of replacement components per existing components.

Example

You defined a range of BOMs in which you want to replace every Resource A and every Resource B with

two units of Resource C. In each BOM, the system will replace every unit of Resource A with two units of

Resource C. It will also replace every unit of Resource B with two units of Resource C.

If you want to change parameters for the selected components or for the replacement component, select

one or more of the following checkboxes and specify the desired values:

o Change Additional Quantity

o Change Warehouse

o Change Issue Method

o Change WIP Account

6. Choose OK.

The Bill of Materials - Component Management - Change Preview window appears.

7. The Selected checkbox is selected for each BOM in which the system is about to change the component. If

you do not want to change the component in a BOM, deselect this checkbox.

Each parameter displays a column with the existing value and a column with the replacement value.

8. To execute the task, choose OK.

6.2.2 Adding BOM Components

You can add components of all three types to a desired range of BOMs.



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Procedure

1. From the SAP Business One Main Menu, choose Production → Bill of Materials - Component Management.

The Bill of Materials - Component Management window appears.

2. From the Management Task dropdown list, select Add BOM Components.

3. In the Select BOMs section, define the range of selection criteria for BOMs to which you want to add a

component.

4. In the Select BOM Lines to Add section, select one of the following:

Item - In the From and To fields, define the range of the item components you want to add to the selected

BOMs.

Resource - In the From and To fields, define the range of the resource components you want to add to the

selected BOMs.

Text - Enter text in the Text to Be Added section and move to Step 6, as the fields relevant to items and

resources in the BOMs are not available in the window.

5. In the BOM Line Details to Be Added section, define the following fields:

Quantity

Additional Quantity

Warehouse

Issue Method

WIP Account

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6. Choose OK. The Bill of Materials - Component Management - Add Preview window appears.

7. The Selected checkbox is selected for each BOM to which the system is about to add the component. If you

do not want to add the component to a BOM, deselect this checkbox.




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6.2.3 Deleting BOM Components

Procedure

1. From the SAP Business One Main Menu, choose Production → Component Management → Bill of Materials -

Component Management. The Bill of Materials - Component Management window appears.

2. From the Management Task dropdown list, select Delete BOM Components.

3. In the Select BOMs section, define the range of selection criteria for BOMs from which you want to delete

components.

4. In the Select BOM Lines to Be Deleted field, select one of the following:

Item - In the From and To fields, define the range of the item components you want to delete from the

selected BOMs.

Resource - In the From and To fields, define the range of the resource components you want to delete

from the selected BOMs.

Text - Enter at least part of the text line you want to delete.

5. Choose OK. The window Bill of Materials - Component Management - Delete Preview appears.

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6. The Selected checkbox is selected for each BOM in which the system is about to delete the component line. If

you do not want to delete the component in a BOM, deselect this checkbox.



Enhancements to Production Orders

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7 Enhancements to Production Orders

The following major enhancements have been made to production orders:

Information about resources as well as textual information has been added.

When reporting completion of a production order, the system creates an issue for production for any item or

resource components with the Backflush issue method.

Upon closing a production order, any difference for non-standard cost parent items posted to the WIP

Variance account is posted to the Inventory account of the parent item.

By-product item components are handled more easily.

7.1 Production Order Window

Procedure

1. From the SAP Business One Main Menu, choose Production → Production Order.

View or update the following fields on the Components tab:

Note

o Fields that are self-explanatory are not described in the table below.

o Some of the fields are not visible by default. Use (Form Settings) in the toolbar to define which

fields you want displayed.

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Start Date (header) Displays the start date of the production. By default, this date is the same as Order Date.

You can change it manually, which may affect Due Date.

Due Date By default, this date displays the planned completion date and is calculated based od

Start Date and the lead time of the parent item. You can change this date manually.

Type You can select one of the following options:

Item - This is the default option. The remaining fields for the Item option are

populated by default from the BOM window associated with the parent item or from

the Item Master Data window.

Resource - When this option is selected, you can select a desired resource from the

choose from list in the No. field. The remaining fields for the Resource option are

populated by default from the BOM window associated with the parent item or from

the Resource Master Data window.

Text - Select this option to add text in the line; the remaining fields merge into one.

The text is added automatically from the corresponding line in the Bill of Materials

window associated with the parent item, or you can define it manually in this

window.

No. and Description These fields were originally Item No. and Item Description.

Base Qty Quantity of the components necessary to produce the bill of materials for one parent

product. The value is copied from the Bill of Materials window. You can update this field if

necessary.

Note

The Base Qty value of a resource component cannot be less than zero.

Additional Qty The value is copied from the Additional Qty field in the Bill of Materials window; however,

you can change it manually in the production order.

Note

o Only components of the Manual issue method can have zero Base Qty and

the Additional Quantity larger than zero.

o The additional quantity for by-products is always zero.

Planned Qty For each component line, the value of this field is calculated according to the following

formula:

(Planned Quantity of the parent * Base Qty of the component)

+ Additional Qty of the component

Available For resources, this field displays the total resource availability for the warehouse

populated on the production order line. Click (Link Arrow) to update the internal

capacity of the resource for the mentioned warehouse in the Resource Capacity window.

After you update the internal capacity and return to the production order, the value of

this field is refreshed.

Start Date Displays the date when the component is needed in the production process at the

earliest.



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By default, this date is copied from the Start Date field on the header. You can change it

manually, however, the date cannot be earlier than the start date on the header.

End Date Displays the latest date by which the component needs to be used in the production

process.

By default, this date is the same as Due Date on the header of the production order. You

can change it manually, however, it cannot be later than the due date on the header.

MRP, ATP and resource capacity reports take into consideration the date ranges defined

for each component separately.

WIP Account If the production order lines are populated with components from a BOM, the account

defined in the WIP Account field of the BOM for the relevant component populates this

field. If the WIP Account field for the relevant component is blank in the BOM, this

account is blank, too.

You can manually update the account in this field before the production order closure.

The value of this field is then copied into the Account Code field of the issue for

production.

If you leave this field blank, the related WIP Account applies according to the definitions

in the Document Settings window. For more information, see section 7.6 Document


Resource Allocation The value of this field is taken from the relevant Resource Master Data window. If

needed, you can update it manually.

The following options are available:

On Due Date - The capacity of the resource is allocated to the due date of the

production order. This means that the value of the resource capacity in the Open Qty

field is counted as Committed capacity on the due date of the production order.

Automatic - The capacity of the resource is allocated to the due date when it is

assigned to the production order; however, if the Open Qty is greater than the

Internal capacity for the due date, the system allocates only as much capacity as

there is Internal capacity defined for the due date and continues to allocate the

remaining capacity to the day before the due date. The process continues

backwards for each day until it reaches the current system date and allocates all the

remaining Open Qty to the current system date regardless of how much Internal

capacity is defined for that day.

Note

With automatic resource allocation, the system takes into account the Internal

capacity, not the Available one. This means that if there are more production

orders with the same due date, the resource allocation is run against the Internal

capacity for each production separately; it does not take into account whether

there are already production orders which might have consumed the Internal

capacity for that day.

Note

The triggers for running the resource allocation process are the following:

o Adding the production order

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o Updating the Planned Qty, Resource Allocation, and Warehouse on a

resource line (only for the resource in question). Updating the Due Date field

triggers the resource allocation process for all resources in the production

order.

Updating the internal capacity does not trigger resource allocation, hence, if you

have updated the internal capacity and want the system to run the resource

allocation process to update the allocated amounts, you need to update the

production order as described above.

Run Time Displays the quantity of the resource included in the production order expressed in time.

The Run Time is calculated according to the following formula:

Base Qty of the resource * Planned Qty of the parent item * (Time per Resource Unit /

Resource Units per Time)

Additional Time Displays the additional quantity of the resource needed to complete the production

order, expressed in time. Additional Time is calculated according to the following

formula:

Additional Qty * Time per Resource Units / Resource Units per Time

Total Time Displays the total of the Run Time and Additional Time.

Up and Down arrows Use the Up and Down arrows to raise or lower a selected component line similarly as in

the Bill of Materials window.

2. View or update the following fields on the Summary tab:


Actual Item

Component Cost

Total value of all item components (not including non-inventory components) issued for

the production order.

Note

Any item component which has been returned through the return components

functionality in the Receipt from Production window reduces the Actual Item

Component Cost value by its cost.

Actual Resource

Component Cost

Records the cost of all resource components which have been issued for production.

Note

Any resource component which has been returned through the return

components functionality in the Receipt from Production window reduces the

Actual Resource Component Cost value by its cost.

Actual Additional

Cost

The cost of all non-inventory item components which have been issued for production.

Actual Product Cost The cost of all received parent items, including any rejected items but excluding the

received by-products.



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Actual By-Product

Cost

Records the cost of all by-product items which have been received from production,

including any rejected by-products.

Click (Link Arrow) to open the Inventory Posting List window and view the relevant cost

breakdown for the posted by-products.

Total Variance Displays the sum of costs of all parent items and by-products reduced by the sum of

resource costs and the additional costs. The following formula applies:

(Parent Cost + By-Product Cost) - (Item Cost + Resource Cost + Additional Cost)

Total Run Time, Total

Additional Time,

Total Time

Display the corresponding fields on the Components tab for the resource with the longest

Total Time.

Note

Parent items associated with sales or assembly BOMs cannot be used as a production order component.

7.2 By-Product Handling in Production Orders and Production Processes

By-product item components are inventory item components entered with a negative quantity in the Bill of

Materials and Production Order windows. The following enhancements have been made in relation to by-products:

The Manual issue method for by-products is now enabled in addition to the Backflush issue method, and by-

products are then displayed in receipts from production. The ability to receive by-products with the Manual

issue method enables you to manage them with the Serial/Batches valuation method.

Upon receiving a by-product in the receipt from production, you can define its cost in the Unit Price field.

By-products can be rejected in the receipt from production document; rejection of a by-product has no

impact on the posting behind nor on the Rejected Quantity field on the Summary tab of the Production Order

window.

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Note

Non-inventory items and resources cannot be by-products.

7.3 Change of Valuation Method of Item Included in Open Production Order

An item's valuation method cannot be changed if the item is a parent item included in an open production order.

7.4 Disassembly Production Order

Resources cannot be included in a disassembly production order. When a BOM automatically populates a

disassembly production order, the resource lines are omitted. You cannot change Production Order Type to

Disassembly as long as the production order contains resource components.

7.5 User-Defined Fields (UDF) Handling

If a UDF field with the same name and same type exists in both the Bill of Materials window component table and

on the Production Order window table, then on entry of the parent item into a production order, the values of the

UDF fields from the Bill of Materials window are copied into the corresponding UDF fields in the Production Order

window.

By setting a UDF field in the Bill of Materials window to hold a link to a file, you cause that link to be copied into the

corresponding UDF field in the Production Order window. This feature is important as a means of handling

attachments such as manufacturing plans or other documents.

7.6 Document Settings and WIP Account

You can decide whether you want the costs of components in the production order to be posted to the WIP

account of the parent item or to the WIP account defined for the each component.

To do so, from the SAP Business One Main Menu, choose Administration → System Initialization → Document

Settings.



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In the Document Settings window for the production order document, in the Use for Components Transactions

section, choose one of the following options:

Component WIP Accounts - Uses the component WIP accounts throughout the production process. For

example, if a parent item consists of a child item Item01 and a resource Res01, the default accounts are used

as displayed below.

Component Default WIP Account Comment

Item01 Depending on the definition in the Set

G/L Accounts By field on the Inventory

tab of the Item Master Data window of

the component item, the WIP Inventory

account defined at the warehouse, item

group, or item level is used.

Note

If advanced G/L account

determination rules are defined

If you define a different account in the WIP

Account field of the Production Order

window for this item component, then the

defined account is used as the WIP

account. (The value from the WIP Account

field of the Bill of Materials window is

copied into the production order; however,

if no account is defined in the bill of

materials, then the WIP Account field in the

production order is left blank.)

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for the warehouse, item group,

or the item component in

question, other WIP Inventory

accounts may be used.

Res01 The Resource WIP account defined on

the Resources tab of the G/L Account

Determination window applies, unless an

advanced G/L account rule requires a

different Resource WIP account.



window for this resource component, then

the defined account is used as the WIP

account. (The value from the WIP Account

field of the Bill of Materials window is

copied into the production order; however,

if no account is defined in the bill of

materials, then the WIP Account field in the

production order is left blank.)

Parent Item WIP Accounts - Uses the parent WIP account as the WIP account for the journal entries of the

component transactions (both for item and resource components) throughout the production process. The

parent item is defined in the bill of materials that was selected in the production order.

For example, if a parent item consists of a child item Item01 and a resource Res01, the default accounts are

used as displayed below.


Item01 Depending on the definition in the Set

G/L Accounts By field on the Inventory

tab of the Item Master Data window of

the parent item, the WIP Inventory

account defined at the warehouse, item

group, or item level is used.

Note

If advanced G/L account

determination rules are defined

for the warehouse, item group,

or the parent item in question,

other WIP Inventory accounts

may be used.



window for this item or resource

component, then the defined account is

used as the WIP account. (The value from

the WIP Account field of the Bill of Materials

window is copied into the production order;

however, if no account is defined in the bill

of materials, then the WIP Account field in

the production order is left blank.)

Res01

7.7 Closing Production Order and Handling Components Cost

Upon the closing of the production order, a journal entry is created automatically in which all WIP accounts used

during the production process are zeroed down; the value from the WIP accounts is transferred to the WIP

Inventory Variance account of the parent item.



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Note

If an interim WIP consolidation mapping is defined for a WIP account, the WIP account is zeroed down and

the value is transferred to the defined interim WIP account. This process may continue if further interim

WIP accounts are defined. The last interim WIP account in the chain of interim WIP account mapping is

then zeroed down and the value is transferred to the WIP Variance account of the parent item. For more

information on the interim WIP consolidation mapping, see section 10 Interim WIP Consolidation Account

Mapping.

Before posting the journal entry behind the production closure, a check is made to verify if the total component

cost equals the total cost of the received parent items and its by-products. If there is a difference, it is transferred

from the WIP Inventory Variance account of the parent item back to the Inventory account of the parent item.

However, this applies only if the following two conditions are met:

The parent item is managed by a validation method other than Standard.

The parent item's quantity in the inventory is greater than zero; it has not been sold out before the production

order closure.

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Enhancements to Issue for Production

8 Enhancements to Issue for Production

The following enhancements have been made to the Issue for Production window:

Apart from the item component lines, the issue for production now includes resource component lines copied

from production orders.

In addition to postings related to items, when adding an issue for production, the posting of resource

expenses is credited from the resource expense accounts as defined in the G/L Determination Accounts

window or the advanced G/L account determination rules and debited to the resource related WIP account.

8.1 Issue for Production Window

Procedure

1. From the SAP Business One Main Menu, choose Production → Issue for Production.

2. View the following fields:

Field Activity/Description

Type For each item or resource component, the value of this field, as well as of the

remaining fields, is copied from the Production Order window. The remaining fields

are also inherited from the production order; however, for resources the following

fields are blank and not editable:

Vendor Catalog No.

Bin Location Allocation

In Stock

Committed



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Ordered

Minimum Inventory Level - Displays zero.

Available

Inventory UoM - Displays Yes.

UoM Code

Items per Unit

UoM Group

Account Code For both resource and item components, the value from the WIP Account field of the

production order is copied into this field unless no WIP account is defined in the

production order. In such a case, it is defined according to the definitions in the

Document Settings window. For more information, see section 7.6 Document


Note

If you update the Whse field in the Issue for Production window, this field is

updated accordingly.

Item Cost This field displays the total standard cost value posted in respect of the resource

after the issue for production document is added.

Distribution Rule,

Project Code

For each component, the values of these fields are taken from the relevant fields of

the Production Order window.

8.2 Posting Behind Issue for Production

When you add an issue for production, in addition to posting expenses for items, in the same journal entry you

also post resource expenses. The resource expenses are transferred from the resource expense account to the

related resource WIP account. The total value posted for each resource unit equals Total Std Resource Cost as

defined in the Resource Master Data window. The actual posting itself is split across up to ten resource expense

accounts as defined by the advanced G/L account determination rules or the G/L account determination and the

WIP account that is defined in the Account Code field of the Issue for Production window.

Example

o An ExampleResource has a Total Std Resource Cost of 100 per unit which is split between Resource

Std Cost 1 = 60 and Resource Std Cost 2 = 40.

Resource No. Total Std

Resource

Cost

Std Cost

Expense 1

Std Cost

Expense 2

ExampleResource 100 60 40

o The journal entry in respect of the resource component consumption of 10 resource units is as

displayed in the table below.

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Account Debit Credit

Std Cost Expense 1 600

Std Cost Expense 2 400

WIP Account 1000

This posting is added to the posting of any other item and resource component within a single journal

entry created upon adding the issue for production. The total value that is posted to all the resource WIP

accounts is added cumulatively to the Actual Resource Component Cost field on the Summary tab of the

production order whenever an issue for production is added.


Enhancements to Receipt from Production

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9 Enhancements to Receipt from Production

The following major enhancements have been introduced to the receipt from production document:

By-products are now visible in this document.

Item component consumption for components with the Backflush issue method is no longer posted in the

same journal entry behind the receipt from production. That posting is now made in a separate journal entry

linked to an automatically created issue from production.

You can return resources in the receipt from production in the same way as you can return items.

Procedure

1. From the SAP Business One Main Menu, choose Production → Receipt from Production.

2. View or update the following fields:


By-Product In addition to displaying the parent item, the receipt from production now displays the by-

products as well. If an item is a by-product, the checkbox for this field is selected.

Note

o You cannot delete by-products with the Backflush issue method, only those with

the Manual issue method.

o Backflush by-products have their quantity set to read-only and it is proportional

to the quantity of the parent produced, but you can update the quantity for by-

products with Manual issue method.

Unit Price Displays the current cost of the by-product. You can update this field manually, unless the

by-product has the Standard valuation method. The value in this field is used for posting the

inventory value of the by-product in the journal entry behind the receipt from production.

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Enhancements to Receipt from Production


Quantity For by-products with the Backflush issue method, you cannot update this field. However,

if you update the quantity of the parent item, the value in this field updates

proportionally.

For by-products with the Manual issue method, you can update this field manually.

Updating the parent item's quantity does not affect this field.

Item Cost After adding the receipt from production, this field displays the following:

For by-products, the cost of the by-product which has been posted in the journal entry

behind the receipt from production.

For parent items, the cost of the parent item which has been posted in the journal entry

behind the receipt from production.

Note

When returning item or resource components, the Account Code field is by default populated with the

value of the WIP Account field in the corresponding production order. If that field is blank, then the system

applies the appropriate WIP account according to the definitions in the Document Settings window.

9.1 Backflush Components Handling and Impact of Additional Quantity

The following applies when processing Backflush components:

Backflush components are always automatically consumed in proportion to the quantity of the parent item

which is currently being received in the receipt from production.

The consumption of Backflush components which are to be processed together with a receipt from

production of the parent item is recorded in a separate journal entry linked to an issue from production

document. The Remarks field of this issue for production reads that the document has been automatically

generated to handle Backflush components related to a specific receipt from production.

If Additional Qty has been specified for a Backflush component, it is automatically consumed on the first

receipt of the parent item from the production order in addition to the regular proportional receipt of

components.


Interim WIP Consolidation Account Mapping

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10 Interim WIP Consolidation Account Mapping

This functionality enables businesses to automatically identify sub-assembly costs on closing a production order

without the need to use nested BOMs and separate production orders for subcomponents.

Example

You produce bicycles and you want to identify the cost of bicycle parts at various stages of the production

order. A bicycle wheel is made up of a number of components whose costs add up to the cost of the

wheel. In addition to identifying the overall cost of the bicycle, you need to identify the cost of the wheel

which would normally not be identified. Using the combination of WIP account settings and the interim

WIP consolidation matrix, you can track the cost of the sub-assemblies through the chart of accounts.

This functionality provides mapping for multiple WIP accounts such that upon the closing of a production order,

the WIP account postings for sub-assembly components are all zeroed down and transferred to a single sub-

assembly interim WIP account. For example, to contain the total wheel cost, and then the sub-assembly, interim

WIP accounts are zeroed down and their values are transferred to the WIP Inventory Variance account. If there is

any difference between the value posted to the WIP Inventory Variance account and the value of the received

parent items and its by-products, it is posted back to the Inventory account of the parent item according to the

enhancements regarding the production order closing. The mapping matrix allows multiple levels of mapping.

Procedure

1. From the SAP Business One Main Menu, choose Administration → Setup → Production.

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2. In the Consolidate From Account (left-hand side) column, select a WIP account from which the value will be

transferred. In the Consolidate To Account (right-hand side) column, select an interim WIP account to which

you want to transfer the value.

Note

o If an account in the right-hand side column is also separately defined in the left-hand side column,

then its value will be zeroed down and transferred to the account in the Consolidate To Account

column.

o You cannot define one account in the Consolidate From Account more than once.

o Any WIP account or interim WIP account which is not included in the mapping matrix will have its

value automatically transferred to the WIP Variance account of the parent item and subsequently to

the relevant Inventory account.

3. To save the settings, choose Update.

Example

1. You define interim WIP consolidation mapping as displayed below.

2. You open a production order as displayed below.



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The Child1 and Child2 items use WIP account 210102, which is included in the WIP consolidation

mapping matrix.

3. You issue all the components. In the journal entry created behind, the values for Child1 and Child2 are

credited from the Inventory account and debited to the WIP account 210102. The value for R001 is

credited from the relevant standard cost expense accounts and debited to the WIP account 210102.

4. You report the production order's completion. The journal entry created behind credits the WIP

Inventory account (defined for the parent item) with the parent item cost and debits the Inventory

account.

5. You close the production order. The journal entry created behind closing the production order does the

following:

o Zeroes down the WIP account 210102 and transfers the value to the interim WIP account 210103

according to the WIP consolidation settings.

o Zeroes down the interim WIP account 210103 and transfers the amount to the WIP Variance account.

o If there is a difference between the value transferred to the WIP Variance account and the value of the

received parent item and its by-product, it is posted to the Inventory of the parent item.

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